By TOMMY STUBBINGTON And LESLIE JOSEPHS Updated Aug. 25, 2015 10:43 a.m. ET 27 COMMENTS U.S. stocks jumped Tuesday, echoing a rally in Europe, as the global market rout eased despite another sharp drop in China. The Dow Jones Industrial Average advanced 1.8%, or 292 points, to 16164, while the S&P 500 rose 2%, or 38 points, to 1932 and the Nasdaq advanced 2.6%, or 119 points, to 4646. Markets in Europe had extended early gains after China’s central bank cut interest rates by one-quarter of a percentage point, reassuring investors that Beijing is prepared to take fresh measures to boost the economy. The People’s Bank of China also reduced bank-reserve requirements by half of a percentage point, effectively adding 678 billion yuan (about $105.7 billion) to the Chinese economy. The moves came after stocks around the world tumbled on Monday as concerns about a slowdown in China’s economic growth continued to rattle investors. Earlier Tuesday, there was no letup in the selling in Chinese markets. Shares in Shanghai closed 7.6% lower as the index fell below 3000 for the first time since December, following the worst one-day loss in more than eight years on Monday. Japan’s Nikkei closed 4% lower after staging a short-lived recovery.But elsewhere, markets steadied. European shares rebounded sharply from the previous session’s slump. The Stoxx Europe 600 index was 4.2% higher early afternoon, on course for its biggest one-day gain since September 2011.

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